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Victorian Commission for Gambling Regulation Level 5, 35 Spring Street Melbourne Victoria 3000 Australia PO Box 1988, Melbourne Annual Report Victoria 3001 Australia Telephone 61 3 9651 3333 2008–2009 Facsimile 61 3 9651 3777 Annual Report 2008–2009 www.vcgr.vic.gov.au Victorian Commission for Gambling Regulation Office Level 5 35 Spring Street Melbourne Victoria 3000 Postal Address PO Box 1988 Melbourne Victoria 3001 Website: www.vcgr.vic.gov.au Office Hours 9.00 am to 5.00 pm Monday to Friday Switchboard Telephone: 61 3 9651 3333 Facsimile: 61 3 9651 3777 E-mail contact address: [email protected],gov.au Complaints hotline: 61 3 9651 3737 Inspectors at Melbourne Casino Southbank: Telephone: 61 3 9690 4657 (24 hours a day 7 days a week) Executive Commissioner’s Letter 15 October 2009 Minister for Gaming Parliament House Spring Street MELBOURNE VIC 3002 Dear Minister I am pleased to present the Annual Report of the Victorian Commission for Gambling Regulation for 2008–2009. This Annual Report is prepared in accordance with the provisions of the Financial Management Act 1994, the Gambling Regulation Act 2003 and the Casino Control Act 1991 and covers the period between 1 July 2008 and 30 June 2009. Yours sincerely Peter Cohen Executive Commissioner 2 Contents Executive Commissioner’s Letter to Minister 1 Chairman’s Report 5 Part 1 – The Victorian Commission for Gambling Regulation 7 Overview 8 Objectives 9 Functions 10 Commission Members as at 30 June 2009 11 Organisational Chart as at 30 June 2009 12 Organisational Structure 14 Key Achievements in 2008–2009 15 Corporate Governance 18 Part 2 – Report of Operations 2008–2009 by Intended Outcomes 19 Intended Outcome 1 20 Ensure that gaming on gaming machines, casino table gaming, wagering, fixed odds, lotteries, Club Keno and community and charitable gaming is conducted honestly and the management is free from criminal influence Intended Outcome 2 29 Regulate the use of gaming machines in casinos and approved venues, wagering equipment, Club Keno equipment, lotteries equipment and community and charitable gaming equipment Intended Outcome 3 32 Regulate the activities of key operatives in the gaming machine, casino, wagering, lotteries, bookmaking, Club Keno, sports betting and community and charitable gaming industries Intended Outcome 4 36 Supervision and control of the Casino Intended Outcome 5 41 Foster responsible gambling Intended Outcome 6 45 Other operational matters Summary of Financial Results 55 Part 3 – Financial Statements 2008–2009 59 Part 4 – Appendices 97 1A Principal Legislation Administered by the Minister for Gaming 99 1B Commencement Dates of Legislation 100 1C Subordinate Legislation 102 2 Ministerial Direction 103 3 Ministerial Determinations – Community Benefit Statements 106 4 Victorian Commission for Gambling Regulation Rules 109 5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments 112 6 Commission Meetings, Inquiries and Hearings 2008–2009 114 7 Gaming Venues as at 30 June 2009 116 8 Registered Bookmakers as at 30 June 2009 129 9 Bingo Centres and Commercial Raffle Organisers as at 30 June 2009 133 10 Licensing Activities 134 11 Number of Active Licences at 30 June 2008 and 30 June 2009 136 12 Roll of Manufacturers, Suppliers and Testers as at 30 June 2009 137 13 Responsible Gaming Training Course Providers as at 30 June 2009 138 14 Community Benefit Statements – Summary of the Total Claims Made by Club Gaming Venues 140 15 Gambling Player Loss and Taxes and Levies Paid 2008–2009 141 16 Distribution of Taxes from Gambling 143 17 Player Loss from Gaming Machines – Statistical Data Fact Sheet 145 18 Distribution of Player Loss from Gaming Machines 146 19 Representation on Working Parties 147 20 Commission Whistleblower Procedures 148 21 Staff Profile by Position 2008–2009 158 22 Other Information Available on Request 159 23 Disclosure Index 160 24 Glossary 162 3 4 Chairman’s Report This is my last report as Chair. In April I informed the Minister of my decision to stand down at the expiration of the five year term for which all of the Commissioners were originally appointed. I have no intention of reviewing all the changes that have Commissioners has been identified, I am sure that the Minister affected the Commission over these past five years. As we will ensure that the necessary changes are made. have previously reported, virtually every year new areas of There is one new initiative that I wish to discuss because, in responsibility have been vested in the Commission. In my view my view, it is of the utmost importance. The Government is to all of the new work has been appropriate for the Commission be commended for its introduction, across the entire gambling to handle. Staff members have embraced the changes with, portfolio, of the requirement for Responsible Gambling Codes usually, some relish. A change in one’s work which presents of Conduct governing the relationship between the providers of new challenges, is usually welcomed – so it has been here. gambling services and their customers. It is in gaming venues Even more significant changes will now take place with that I believe the Codes have most potential for results. the abolition of the Tabcorp/Tatts duopoly in 2012. Whilst Whilst identification of problem gamblers is not easy, all experts final details are not available, it is plain that a much greater agree that a common picture is that of gaming patrons sitting, responsibility will be cast upon individual venues, and in turn, glued to a screen for hours on end, without a break. The Codes upon the Commission staff with regulatory responsibility have the potential to change this, because they contain positive for those venues. Indeed, the increased workload will be obligations upon venue staff to intervene if a gambler is seen to immense. But I have not the slightest query as to the ability be too long at a poker machine, without a break. of the Commission to cope with this workload provided the In a recent inquiry conducted by the Commission, in which Government increases our resources in the manner in which the owners of a major hotel venue were seeking an increase it has promised. in the number of gaming machines, Mr David Schwarz, who A specific need, in my view, is for an enlarged Commission. has previously battled his own addiction to gambling, was A Commission of three, one of whom is the Executive adamant that intervention by venue staff had the potential to Commissioner – the CEO of an organisation with over 140 staff assist potential problem gamblers greatly. In the same matter – is too small to permit a proper allocation of work. In particular an experienced employee from the hotel group making the it does not permit what might be described as a ‘portfolio’ application, and who has had experience in intervening to assist approach to the division of the work, which I think is desirable. patrons about whom she has become concerned said, ‘We don’t We have been assured that more Commissioners will be want problem gamblers in our venue because it is no good for appointed and I welcome this. In commenting that I think anybody. Certainly not for them, most importantly, but not for that the number of Commissioners has been too small, it our staff either because they get upset too’. must be understood that in 2004 the Commission was set I applaud this sentiment. By mandating a requirement to up from scratch – it’s hardly surprising that the workload of intervene, the Codes give employees in gaming venues the Commissioners was under-estimated. Now that the work of opportunity to develop a different image from that which has 5 Chairman’s Report continued been imposed upon them. The Commission has appointed Throughout the nation, governments are wrestling with the specialized inspectors with responsibility for compliance with issue of problem gamblers and a host of initiatives have been the Codes. introduced in different jurisdictions, to attempt to ameliorate In each of these Reports I have commented that gaming the problem. Recent research has shown that these attempts expenditure has been dropping, in relative terms, since 2002. may be having a positive effect. Quite significant reductions This year the picture has been muddied somewhat by the in addiction numbers have been shown. In the context of Federal Government’s stimulus packages. Overall, expenditure development of sound public policy, I would hope that the upon gaming machines rose by 3.77 per cent. However, if Productivity Commission will recognise the significance that the three months most affected by the stimulus packages has been attached to its previous findings, and will review are removed from the calculation, the increase in expenditure the figures. was less than 1.8 per cent. Having said this it should not be I conclude by thanking the Government for the opportunity to thought that I am subscribing to the view that cash incentives serve as the first Chair of the Commission. During these five are a bad thing because ‘everyone blows them on pokies’. The years there has never been an occasion upon which successive proportionate increase in retail spending was three times higher Ministers or anyone else from Government, sought to interfere than on gaming. with the independent role conferred by the legislation upon the It was in this context that at a recent meeting of all Australia’s Commission. gambling regulators, I expressed disappointment with a I also wish to thank my Deputy Chair, Judith King, for the decision of the Productivity Commission. The Prime Minister has extraordinary efforts that she has made to assist both me and requested that the Productivity Commission review its earlier, the Commission.

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